FedEx Corp.

Memphis, TN: (Apr-10-07) A class action lawsuit filed against FedEx Corp. accused the company of racially discriminating in their hiring policies. The suit alleged the unit that performs overnight deliveries harbored a culture of hostility toward people of color, allowing racial bias to infect its human resources decisions. It also alleged that using the company's "Basic Skills Test" as a prerequisite for promoting employees to higher-paid, more desirable positions, was a racially bigoted procedure, as only 47 % of blacks and 62 % of Latinos pass the Basic Skills Test, as compared with 86 % of white employees. In a settlement agreement, FedEx Corp. agreed to stop using the test as well as pay out almost $55 million and overhaul its pay, discipline and promotions practices. The settlement stands to benefit some 20,000 hourly employees and low-level operations managers who have worked in the company's western regional facilities since October 1999 making it one of the top 10 discrimination settlements in US. [LAW.COM: FEDEX SETTLEMENT]